6-K
BAIDU, INC. filed this Form 6-K on 10/27/2017
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Research and development expenses were RMB 3.2 billion ($487 million), representing a 24% increase from the corresponding period in 2016. The increase was primarily due to the growth of research and development personnel-related costs.

Share-based compensation expenses, which were allocated to related operating costs and expense line items, were RMB 0.8 billion ($126 million) in the third quarter of 2017, compared to RMB 0.4 billion in the corresponding period in 2016.

Operating profit was RMB 4.7 billion ($706 million), representing a 69% increase from the corresponding period in 2016. Non-GAAP operating profit was RMB 5.5 billion ($833 million), representing a 73% increase from the corresponding period in 2016.

Other income, net was RMB 4.2 billion ($636 million), which mainly consisted of the investment gain recognized as a result of disposal of Baidu Deliveries.

Income tax expense was RMB 1.1 billion ($165 million), compared to RMB 1.0 billion in the corresponding period in 2016. The effective tax rate for the third quarter of 2017 was 12% as compared to 25% for the corresponding period in 2016. The decrease in the effective tax rate was primarily due to the nontaxable investment gain.

Net income attributable to Baidu was RMB 7.9 billion ($1.20 billion), representing a 156% increase from the corresponding period in 2016. Basic and diluted earnings per ADS for the third quarter of 2017 amounted to RMB 24 ($3.65) and RMB 24 ($3.62), respectively.

Non-GAAP net income attributable to Baidu was RMB 9.1 billion ($1.36 billion), a 163% increase from the corresponding period in 2016. Non-GAAP diluted earnings per ADS for the third quarter of 2017 amounted to RMB 26 ($3.89).

As of September 30, 2017, the Company had cash, cash equivalents and short-term investments of RMB 108.1 billion ($16.25 billion). Net operating cash inflow for the third quarter of 2017 was RMB 9.7 billion ($1.45 billion). Capital expenditures for the third quarter of 2017 were RMB 1.3 billion ($0.20 billion).

Adjusted EBITDA was RMB 6.8 billion ($1.03 billion) for the third quarter of 2017, representing a 62% increase from the corresponding period in 2016.

Outlook for Fourth Quarter 2017

Baidu currently expects to generate total revenues in the fourth quarter of 2017 between RMB 22.23 billion ($3.34 billion) to RMB 23.41 billion ($3.52 billion), representing a year-over-year growth of 22% to 29%. Excluding disposed businesses, such as mobile games and Baidu Deliveries, the guidance represents a year-over-year growth of 28% to 34%. This forecast reflects Baidu’s current and preliminary view, which is subject to change.